VolCorp Reports $2.1 Million Profit Despite Merger Expenses

The $1.18 billion Volunteer Corporate Credit Union on Friday released unaudited year-end financial results that show a net profit despite a merger with West Virginia Corporate CU that produced the usual non-recurring charges.

VolCorp said in a release that the merger, finalized Feb. 1, 2012, was the most significant contributor to a decrease in net income compared to 2011’s financials: $2.1 million in 2012 compared to $2.6 million the prior year. Additionally, ROA was just 0.15% in 2012, compared to 0.22% in 2011.

However, Chief Financial Officer Jeff Merry told Credit Union Times that VolCorp has “fully absorbed” the non-recurring merger expenses as of year-end. Additionally, members received nearly $600,000 worth of cash dividends in 2012, representing 28% of VolCorp’s net income and a 1% return on perpetual contributed capital.

Net worth as of Dec. 31, 2012, stood at $70.4 million, or 5.33% of total assets, which exceeds the NCUA’s 5% minimum requirement for well capitalized status. VolCorp also reported $9.3 million in retained earnings.

Net unrealized losses on securities were $183,348 as of Dec. 31, a decrease of $1,966,574 (91 per cent) from year-end 2011.

“In this environment, continuing to provide the service our members expect and paying a strong capital dividend while taking on the merger expenses is something of which we are proud and we feel bodes well for the future of our credit union members whom we are here to serve,” Merry said.